Top 4 Tips to Make the Most of Your Auto Leasing Deal
Auto leasing has so many benefits. It offers you the convenience of using a new car every 2-3 years without having to pay a hefty price to buy it. It allows you to drive your dream car like a Lamborghini or Porsche that is otherwise out of your budget. However, over time, the cost of leasing is always higher than buying. The following tips will help you avoid most common mistakes in auto leasing and make it a profitable deal for you.
1. Handle with Care
It should be remembered that the car, though it’s not your own, should be handled with extreme care, since if you fail in that, you may have to pay a big cost. Leading leasing companies like VIP Auto Leasing in NYC are generous enough to allow small wear and tear. However, notable flaws like paint chips, dents, stained upholstery, scrapes and scuffed wheels are not permitted and they may be very expensive for you.
2. You Cannot Fully Escape Maintenance
Even though you haven’t bought your Mercedes and just leased it, you’re responsible for its maintenance according to the automaker’s schedule. The costs for maintenance and repairs that are not covered by the new car warranty will be your accountability. Also, never forget to save the receipts to prove that you’ve got the work done.
3. Bargain can Give You the Best Rate of Interest
Don’t hesitate to bargain for the annual percentage rate of interest (APR). However, you first need to unpack it from the “money factor” revealed on the leasing agreement. If the money factor is listed as a decimal, like 0.0042, multiply it by 2,400 and you’ll find that the interest rate is actually 10.08 percent APR. If it’s shown as a whole number like 3.1, multiply it by 2.4 and you’ll find the actual rate of interest. Once you unpack the actual APR, bargain for a lower rate.
4. Bargain for the “Capitalization” Cost
The “capitalization” cost is the cost of the car minus its estimated value while returning. This time you have to negotiate the price as if you were purchasing it. Visit a website like TrueCar.com to know what buyers in your area are paying for the same car. Take a print out and start bargaining with the seller with that in hand.
If you don’t want to end up in paying more for auto lease than buying a car, follow the above tips, and you can enjoy driving the car of your choice for a really low cost.